Honorable George "Buddy" West, Chair, House Committee on Energy Resources
FROM:
John Keel, Director, Legislative Budget Board
IN RE:
HB2613 by Keffer, Bill (Relating to liens on stored hydrocarbons at sites and facilities that have not been timely cleaned up.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would authorize the Railroad Commission to salvage and sell hydrocarbons, as well as equipment, located on a site or facility on which wells are to be or have been plugged or remediation is to occur or has occurred using funds from the Oil Field Cleanup (OFCU) Account No. 145. According to the Railroad Commission, the agency currently has the authority to salvage stored hydorcarbons on sites where a plugging occurs, but not on sites being cleaned up where no plugging occurs. The agency estimates that approximately $6,000 per year could be generated for deposit in the OFCU Account No. 145 to defray remediation costs if stored hydrocarbons could be salvaged at sites where no well plugging has occurred but cleanup with state funds is required.
Local Government Impact
No fiscal implication to units of local government is anticipated.